International oil prices tumbled on Monday on worries that the COVID-19 pandemic will cut demand in China.
A private forecaster said that Shanghai lockdowns will likely reduce China's overall oil consumption by up to 1.3 million bpd.
Heating oil and gasoline futures also ended in the red on Monday.
Domestic crude oil futures also fell on Monday, tracking weak overseas prices.
Prices also continued to face headwinds due to the planned release of oil inventories by IEA countries from strategic stocks.
The release of SPR volumes equals 1.3 million bpd over the next 6 months, enough to offset a shortfall of 1 million bpd of Russian oil supply.
The SPR release is slowly turning the WTI price curve toward contango. However, prices are still in backwardation.
Adding pressure to crude prices, the U.S. dollar continued to strengthen against a basket of currencies.
Most Active strike price in MCX Crude options of the April contract is, 7200, 7300, 7400, 7600, 7700, 7800 and 7900 for Call and 7000, 7100, 7200, 7300, 7500, 7600 and 7700 for Put.
International oil prices have started higher this Tuesday morning in Asian trade after OPEC warned it would be impossible to increase output enough to offset lost supply.
The EU is drafting proposals for an embargo of Russian oil, although there was still no agreement to ban Russian crude.
Today's range for WTI May contract is $92.00-$98.00.
Domestic crude oil prices could start higher this Tuesday morning, tracking a positive start in the overseas prices.
India's fuel demand rose to a 3-year high in March. Consumption of fuel, a proxy for oil demand, rose 4.2% from the same month last year to 19.41 million tonnes, its highest since March 2019's record high, according to government data.
Today's range for MCX April contract is 7050-7400. |
